2019 PREDICTIONS FOR HMOs
2018 was certainly an interesting year for Landlords.
For HMO Landlords the biggest change was, of course, the expansion of the Mandatory Licencing requirements, resulting in more properties falling under the legislation to prevent Landlords from overcrowding their rentals.
As a reminder, under this licensing expansion all Landlords letting their property to five or more people from two separate households are now required to obtain a license, not forgetting the new restrictions on bedroom sizing for both children and adults.
But now firmly settled into 2019, I for one feel confident about the year ahead, where the following predictions will be key for HMO Landlords over the next 12 months:
With Brexit will come Opportunity
If we believed everything in the media, Theresa May would have resigned months ago and the UK public would be facing a second referendum on the proposed Brexit Deal. Now, I’m certainly not going to make a prediction on the outcome of Brexit, as by the time this goes to print, I genuinely couldn’t tell you what might have changed, but what I can say is that I feel Brexit will bring opportunity for HMO Investors.
Many areas of the UK have experienced a decline in the asking price of property, which means for Investors, whether now or post-Brexit, offers an ideal time to buy. If you’ve been in property investment long enough, you will have experienced the growth and decline of the property market. Brexit is just another cycle of this, in effect what goes up must come down and visa-versa.
Growth in Tenant Demand
A recent poll conducted by Development Finance Today has revealed that 76% of industry professionals predict a rise in co-living developments during 2019.
Despite multiple schemes to help first-time buyers, the concept of owning property is still out of reach for many young professionals, where it has become the norm for Millennials, particularly in City locations, to live long-term in shared housing.
For HMO Landlords, 2019 could, therefore, see a period of tenant demand, which, combined with a drop in the potential capital to purchase HMOs, makes for a successful year ahead.
Harnessing the Power of Tech
Uber, Deliveroo and Air B&B all have one key thing in common: They have used the power of technology to automate service delivery in order to grow their business at scale.
During 2019, I predict more and more Landlords will wake up to the power of technology in systemising their property and tenant management, reducing the time, cost and resource normally spent on administration tasks, whilst enabling them to focus on growing their HMO Property Portfolio for the long-term.